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Cobe Company has already manufactured 24,000 units of Product A at a cost of $25 per unit. The 24,000 units can be sold
Posted: Tue Nov 16, 2021 9:11 am
by answerhappygod
- Cobe Company Has Already Manufactured 24 000 Units Of Product A At A Cost Of 25 Per Unit The 24 000 Units Can Be Sold 1 (32.43 KiB) Viewed 55 times
Cobe
Company has already manufactured 24,000 units of Product A at a cost of $25 per unit. The 24,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $230,000 total additional cost and be converted into 5,900 units of Product B and 11,000 units of Product C. Per unit selling price for Product B is $101 and for Product C is $53 1. Prepare an analysis that shows whether the 24,000 units of Product A should be processed further or not? Sell as is Process Further Sales Relevant costs Total relevant costs Income (0) Incremental net income (or loss) if processed further The
company should